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Split Loans Split loans refer to having a portion of the loan on a fixed interest rate and the balance on a variable interest rate. This style of loan is excellent for clients seeking a reasonable amount of certainty in relation to future interest rate movements, whilst maintaining the flexibility of having all the benefits associated with a variable rate product. Should interest rates increase or decrease, only the variable portion is affected. Loan statements are issued on both portions of the loan. Suitable for clients looking to have some protection from interest rate fluctuations, whilst still having the benefits associated with a variable product. A good choice for people with larger mortgages.  Basic Rate Home Loan This style of loan will offer a cheaper variable interest rate initially and will also generally attract monthly account keeping fees. You may also find that there are limits to the amount of extra repayments credited to your account. Generally these products don’t offer a redraw facility or if they do, the minimum redraw amount is high.This may mean that should you require access to the extra payments you have made on your loan you may have to redraw two or three thousand dollars. Suitable for people with the ability to make smaller extra repayments who may not wish to have regular access to the redraw facility. Fixed Interest Rate Loans As the title suggests, fixed rate loans allow you to select a fixed interest rate for a selected period usually between 1, 2, 3, 5 and with some institutions, up to 10 years or longer. This means that regardless of interest rate fluctuations, your interest rate is locked in for a predetermined period. Fixed rates generally have restrictions on the amounts of extra repayments that can be made and will usually not offer redraw facilities. When considering a fixed rate product, you need to be aware that should you complete your loan early you may be up for break costs (penalties) which can be substantial. Prior to completion of the fixed rate period the lender will usually advise you that the fixed period is due to expire. They will offer you the option to refix your loan at the rates applicable at the time or if you do nothing the loan will revert to the standard variable interest rate. Mark Wehse Home Loans have access to lenders that offer leading edge fixed rate products, with unlimited extra repayments and full offset and redraw facilities. Suitable for clients who have the ability to make limited additional repayments and require stability in their repayments, wishing to be protected from the interest rate movements made by the Reserve Bank. However you should keep in mind that when selecting a fixed interest rate that these rates may be slightly higher than variable rates so it is wise to consider how many times the Reserve Bank of Australia would have to raise official interest rates before it would reach the fixed rate you may be considering. For more information please contact our office on 03 62319700. Line of Credit Loans These type of loans can be excellent if used correctly, as they can be drawn back to the original balance at any time and will allow you access to funds should the need arise. They are not suited to people that are unable to budget their money as in numerous cases borrowers continually draw the loan back to the limit and never reduce the loan amount or obtain any equity in their property. Suited to clients that have a good deposit (20%), are very good budgeters and like the idea of having ready access to funds. If used correctly, this product can save you thousands of dollars in interest charges allowing you to clear your mortgage quite quickly. When you arrange your loan through Mark Wehse Home Loans we will discuss a number of loan options that suit your lifestyle. Interest-Only Loans As the name suggests interest-only loans cover only the interest charged on the loan. The amount of the loan (or principal) remains the same as originally borrowed. Most lenders will allow you to reduce the principal amount of the loan at any time. Interest-only loans generally have a maximum term of 5 years, after which time they have to be finalised or they may revert to a standard principal and interest loan depending on the lender. When considering this type of loan please consider that in most cases on completion of the interest only term you will still owe the same amount as originally borrowed. Suits clients seeking lower initial repayments or investors relying on captial gains. What is a Lo Doc Loan As the name suggests Lo Doc loans require a minimum of information to be supplied by the borrower to facilitate their loan approval. Lo Doc loans are generally only avaliable to self employed applicants that have a registered ACN or ABN number. Lo Doc loans allow borrowers to self certify their income. In other words the lenders don't wish to see any supporting financial information. The borrower is required to complete an income declaration form stating how much they earn per annum. Borrowers will require at least a 20% deposit in most instances and depending of the lender must also have a clear credit history. If your self employed and require your loan quickly without having to go through all the normal channels Lo Doc loans are a great option. Mark Wehse Home Loans has access to a wide range of lenders offering Lo Doc loans. Standard Variable Loan This product is generally a premium-priced product at the upper end of the interest rate scale. These loans will usually offer all the benefits available including unlimited extra repayments, redraw facilities and offset accounts. The interest rate is variable and will fluctuate in line with interest rate adjustments by the Reserve Bank. Suitable for clients who like the having all the options and have extra funds available to contribute to the loan and don’t mind the possibility of having their interest rates move in line with Reserve Bank policy. Honeymoon or Introductory Rate Loans These type of loans generally offer a cheaper interest rate for the first 6 or 12 months and on completion of the introductory period usually revert to the higher standard variable interest rate products.In some instances these products may have substantial penalties if the loan is completed within a certain time frame and may also have limits on extra repayments that can be made. Some lenders will offer a 100% offset account with these accounts along with a redraw facility, aways have a good look at the terms and restrictions of this type of product |
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 Submit a Pre-Approval Form to see if you are eligible for a loan  
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